nach oben

Small Business Economics

Erschienen in:

15.10.2016

Self-employment amongst migrant groups: new evidence from England and Wales

verfasst von: Ken Clark, Stephen Drinkwater, Catherine Robinson

Erschienen in: Small Business Economics | Ausgabe 4/2017

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Self-employment constitutes a vital part of the economy since entrepreneurs can provide employment not only for themselves but also for others. The link between self-employment and immigration is, however, complex, especially given the changing nature of self-employment. We investigate the evolving relationship between self-employment and immigration using recently released microdata from the 2011 Census for England and Wales. Our findings indicate large variations, with high self-employment rates observed for some groups with a long established history of migration to the UK (especially men born in Pakistan) and also for some groups who have arrived more recently (such as from the EU’s new member states). We further explore the differences, analyse variations by gender and identify key determining factors. In addition to certain socio-economic characteristics, it is found that migration-related influences, such as English language proficiency and period of arrival in the UK, play an important role for some groups.

Vorheriger Artikel Information technology clusters and regional growth in America, 1970–1980

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Nur mit Berechtigung zugänglich

This study essentially updates and extends that of Le (1999).

Self-employment is also found to increase with experience in the labour market, in terms of both the amount and duration, which is closely related to age. There is, however, some indication that self-employment is becoming increasingly popular amongst older workers, with a growth in the number of ‘olderpreneurs’ (Fineman 2014).

Separate Censuses are undertaken in Scotland and Northern Ireland, and these are administered by different statistical agencies. As a result, each agency has different release policies for Census statistics and data, as well as there being some differences in the questions asked. Moreover, England and Wales capture well over 90 % of all immigrants and ethnic minorities in the UK.

These variables have been included in the augmented specification because of the inter-relationships that exist between migrant group, ethnicity and religion, which will influence the estimates for the different migrant groups (relative to the UK born). There are several data issues in connection with health and self-employment, as discussed in Simoes et al. (2016). Housing tenure can have an important effect on self-employment because of the ability to ease credit constraints (Black et al. 1996), but housing tenure is likely to be endogenous in a single equation regression framework (Henley 2004).

Carter et al. (2015) discuss barriers to establishing businesses for women from ethnic minority groups in the UK.

The denominator for this group is relatively small, with only 746 self-employed men born in Bangladesh in the sample, which is the third smallest of the groups reported in Table 3.

A full set of results for each of the pooled models using the basic specification is given in Table 10 in Appendix, along with the means of the explanatory variables. The estimates in this table are generally consistent with the empirical regularities summarised in Simoes et al. (2016). Other definitions of self-employed, such as where the unemployed have been included in the denominator as opposed to just those in employment, produced very similar results with regard to the differences between migrant groups. Results are available from the authors on request.

The industry dummies may be thought to be endogenous. However, removing these from the model does not have a major effect on most of the migrant group dummy variables, with a significantly higher probability of employing others continuing to be observed for seven of the 12 migrant groups compared to the UK born in the model where the industry dummies have been excluded. Some of the marginal effects do alter for some migrant groups, such as increasing for Bangladeshis and Other Asians when the industry dummies are excluded.

Some of the dummy variables included in the pooled models, such as for regions and marital status, have been combined because of the relatively small number of observations in some of the categories included in the pooled models for some of the migrant categories.

We make use of two language questions that were asked in the Census. The first relates to the main language used in the household and the second to how well the migrant speaks English, if their main language is not English. The reference category is main language is English. Individuals in this category may therefore be thought to be most proficient in English.

The percentage employing others does increase with age for all migration categories in the raw data, but the age differences are relatively small for people born in the New-EU and Outside Europe.

Ajayi-Obe, O., & Parker, S. (2005). The changing nature of work among the self-employed in the 1990s: Evidence from Britain. Journal of Labor Research, 26(3), 501–517. doi:10.1007/s12122-005-1017-1.CrossRef

Alden, L., & Hammarstedt, M. (2016). Discrimination in the credit market? Access to financial capital among self-employed immigrants. Kyklos, 69(1), 3–31. doi:10.1111/kykl.12101.CrossRef

Aldrich, H., Cater, J., Jones, T., McEvoy, D., & Velleman, P. (1985). Ethnic residential concentration and the protected market hypothesis. Social Forces, 63(4), 996–1009. doi:10.1093/sf/63.4.996.CrossRef

Andersson, L., & Hammarstedt, M. (2010). Intergenerational transmissions in immigrant self-employment: Evidence from three generations. Small Business Economics, 34(3), 261–276. doi:10.1007/s11187-008-9117-y.CrossRef

Basu, A. (1998). An exploration of entrepreneurial activity among Asian small businesses in Britain. Small Business Economics, 10(4), 313–326. doi:10.1023/A:1007956009913.CrossRef

Basu, A., & Altinay, E. (2002). The interaction between culture and entrepreneurship in London’s immigrant businesses. International Small Business Journal, 20(4), 371–393. doi:10.1177/0266242602204001.CrossRef

Bates, T. (1997). Race, self-employment, and upward mobility: An illusive American dream. Washington, DC: Woodrow Wilson Center Press.

Behling, F., & Harvey, M. (2015). The evolution of false self-employment in the British construction industry: A neo-Polanyian account of labour market formation. Work, Employment and Society, 29(6), 969–988. doi:10.1177/0950017014559960.CrossRef

Black, J., De Meza, D., & Jeffreys, D. (1996). House prices, the supply of collateral and the enterprise economy. Economic Journal, 106(434), 60–75. doi:10.2307/2234931.

Blanchflower, D., Levine, P., & Zimmermann, D. (2003). Discrimination in the small-business credit market. Review of Economics and Statistics, 85(4), 930–943.CrossRef

Boeheim, R., & Muehlberger, U. (2009). Dependent self-employment: Workers between employment and self-employment in the UK. Journal for Labour Market Research, 42(2), 182–195. doi:10.1007/s12651-009-0014-x.CrossRef

Borjas, G. J. (1985). Assimilation, changes in cohort quality, and the earnings of immigrants. Journal of Labor Economics, 3(4), 463–489.CrossRef

Borjas, G. J. (1986). The self-employment experience of immigrants. Journal of Human Resources, 21(4), 485–506. doi:10.2307/145764.CrossRef

Borjas, G. J., & Bronars, S. (1989). Customer discrimination and self-employment. Journal of Political Economy, 97(3), 581–605.CrossRef

Borooah, V. K., & Hart, M. (1999). Factors affecting self-employment among Indian and Black Caribbean men in Britain. Small Business Economics, 13(2), 111–129. doi:10.1023/A:1008134627296.CrossRef

Carter, S., Mwaura, S., Ram, M., Trehan, K., & Jones, T. (2015). Barriers to ethnic minority and women’s enterprise: Existing evidence, policy tensions and unsettled questions. International Small Business Journal, 33(1), 49–69. doi:10.1177/0266242614556823.CrossRef

Castles, S., De Haas, H., & Miller, M. J. (2013). The age of migration: International population movements in the modern world (5th ed.). Basingstoke: Palgrave Macmillan.

Chiswick, B. R. (2008). The economics of language: An introduction and overview. IZA Discussion Paper No. 3568, Bonn, Germany.

Clark, K., & Drinkwater, S. (1998). Ethnicity and self-employment in Britain. Oxford Bulletin of Economics and Statistics, 60(3), 383–407. doi:10.1111/1468-0084.00105.CrossRef

Clark, K., & Drinkwater, S. (2000). Pushed in or pulled out? Self-employment among ethnic minorities in England and Wales. Labour Economics, 7(5), 603–628. doi:10.1016/S0927-5371(00)00015-4.CrossRef

Clark, K., & Drinkwater, S. (2008). The labour-market performance of recent migrants. Oxford Review of Economic Policy, 24(3), 495–516. doi:10.1093/oxrep/grn023.CrossRef

Clark, K., & Drinkwater, S. (2009). Immigrant self-employment adjustment: Ethnic groups in the UK. International Journal of Manpower, 30(1), 163–175. doi:10.1108/01437720910948465.CrossRef

Clark, K., & Drinkwater, S. (2010). Patterns of ethnic self-employment in time and space: Evidence from British census microdata. Small Business Economics, 34(3), 323–338. doi:10.1007/s11187-008-9122-1.CrossRef

Constant, A., & Zimmerman, K. F. (2006). The making of entrepreneurs in Germany: Are native men and immigrants alike? Small Business Economics, 26(3), 279–300. doi:10.1007/s11187-005-3004-6.CrossRef

Devitt, C. (2012). Labour migration governance in contemporary Europe. The UK case. Fieri Working Paper, April.

Disney, R., & Gathergood, J. (2009). Housing wealth, liquidity constraints and self-employment. Labour Economics, 16(1), 79–88. doi:10.1016/j.labeco.2008.05.002.CrossRef

Doherty, B., Haugh, H., & Lyon, F. (2014). Social enterprises as hybrid organizations: A review and research agenda. International Journal of Management Reviews, 16(4), 417–436. doi:10.1111/ijmr.12028.CrossRef

Evans, M. D. R. (1989). Immigrant entrepreneurship: Effects of ethnic market size and isolated labor market pool. American Sociological Review, 54(6), 950–962.CrossRef

Fairlie, R. W., & Lofstrom, M. (2015). Immigrant entrepreneurship. In B. Chiswick & P. Miller (Eds.), Handbook of the economics of international immigration (Vol. 1B). Amsterdam: Elsevier.

Fairlie, R. W., & Meyer, B. D. (1996). Ethnic and racial self-employment differences and possible explanations. Journal of Human Resources, 31(4), 757–793. doi:10.2307/146146.CrossRef

Fairlie, R. W., & Miranda, J. (2016). Taking the leap: The determinants of entrepreneurs hiring their first employee. NBER Working Paper No. 22428.

Fairlie, R. W., & Woodruff, C. (2010). Mexican-American entrepreneurship. The Berkeley Electronic Journal of Economic Analysis and Policy, 10(1), 1–42.

Fineman, S. (2014). Age matters. Organization Studies, 35(11), 1719–1723. doi:10.1177/0170840614553771.CrossRef

Georgellis, Y., & Wall, H. J. (2000). What makes a region entrepreneurial? Evidence from Britain. The Annals of Regional Science, 34(3), 385–403. doi:10.1007/s001689900014.CrossRef

Guerra, G., & Patuelli, R. (2014). The influence of role models on immigrant self-employment: A spatial analysis for Switzerland. International Journal of Manpower, 35(1/2), 187–215. doi:10.1108/IJM-08-2013-0200.CrossRef

Heath, A., & Martin, J. (2013). Can religious affiliation explain ‘ethnic’ inequalities in the labour market? Ethnic and Racial Studies, 36(6), 1005–1027. doi:10.1080/01419870.2012.657660.CrossRef

Henley, A. (2004). Self-employment status: The role of state dependence and initial circumstances. Small Business Economics, 22(1), 67–82. doi:10.1023/B:SBEJ.0000011573.84746.04.CrossRef

Henley, A. (2015). The post-crisis growth in the self-employed: volunteers or reluctant recruits? IZA Discussion Paper No. 9232, Bonn, Germany.

Jones, T., Ram, M., Li, Y., Edwards, P., & Villares, M. (2015). Super-diverse Britain and new migrant enterprises. IRiS Working Paper Series No. 8, University of Birmingham.

Kapadia, D., Nazroo, J., & Clark, K. (2015). Have ethnic inequalities in the labour market persisted? In S. Jivraj & L. Simpson (Eds.), Ethnic identity and inequalities in Britain: The dynamics of diversity. Bristol: Policy Press.

Le, A. T. (1999). Empirical studies of self-employment. Journal of Economic Surveys, 13(4), 382–416. doi:10.1111/1467-6419.00088.CrossRef

Levie, J. (2007). Immigration, in-migration, ethnicity and entrepreneurship in the United Kingdom. Small Business Economics, 28(2), 143–169. doi:10.1007/s11187-006-9013-2.CrossRef

Lofstrom, M. (2002). Labor market assimilation and the self-employment decision of immigrant entrepreneurs. Journal of Population Economics, 15(1), 191–222. doi:10.1007/978-3-540-24753-1_10.CrossRef

Longhi, S., Nicoletti, C., & Platt, L. (2013). Explained and unexplained wage gaps across the main ethno-religious groups in Great Britain. Oxford Economic Papers, 65(2), 471–493. doi:10.1093/oep/gps025.CrossRef

MAC. (2014). Tier 1 investor route: Investment thresholds and economic benefits. London: Migration Advisory Committee, Home Office.

Metcalf, H., Modood, T., & Virdee, S. (1996). Asian self-employment: The interaction of culture and economics. London: Policy Studies Institute.

Miranda, A., & Zhu, Y. (2013). English deficiency and the native immigrant wage gap. Economics Letters, 118(1), 38–41. doi:10.1016/j.econlet.2012.09.007.CrossRef

Nunziata, L., & Rocco, L. (2011). The implications of cultural background on labour market choices: The case of religion and entrepreneurship. IZA Discussion Paper No. 6114, Bonn, Germany.

Rafiq, M. (1992). Ethnicity and enterprise: A comparison of Muslim and non-Muslim owned Asian businesses in Britain. Journal of Ethnic and Migration Studies, 19(1), 43–60. doi:10.1080/1369183X.1992.9976341.

Ram, M., & Deakins, D. (1996). African-Caribbeans in business. Journal of Ethnic and Migration Studies, 22(1), 67–84. doi:10.1080/1369183X.1996.9976522.CrossRef

Ram, M., Jones, T., Edwards, P., Kiselinchev, A., Muchenje, L., & Woldesenbet, K. (2013). Engaging with super-diversity: New migrant businesses and the research-policy nexus. International Small Business Journal, 31(4), 337–356. doi:10.1177/0266242611429979.CrossRef

Ram, M., Sanghera, B., Abbas, T., Barlow, G., & Jones, T. (2000). Ethnic minority business in comparative perspective: The case of the independent restaurant sector. Journal of Ethnic and Migration Studies, 26(3), 495–510. doi:10.1080/713680492.CrossRef

Simoes, N., Crespo, N., & Moreira, S. B. (2016). Individual determinants of self-employment entry: What do we really know? Journal of Economic Surveys, 30(4), 783–806. doi:10.1111/joes.12111.CrossRef

Vertovec, S. (2007). Super-diversity and its implications. Ethnic and Racial Studies, 30(6), 1024–1054. doi:10.1080/01419870701599465.CrossRef

Wellington, A. (2006). Self-employment: The new solution for balancing family and career? Labour Economics, 13(3), 357–386. doi:10.1016/j.labeco.2004.10.005.CrossRef

Yuengert, A. M. (1995). Testing hypotheses of immigrant self-employment. Journal of Human Resources, 30(1), 194–204. doi:10.2307/146196.CrossRef

Titel: Self-employment amongst migrant groups: new evidence from England and Wales
verfasst von: Ken Clark
Stephen Drinkwater
Catherine Robinson
Publikationsdatum: 15.10.2016
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 4/2017
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-016-9804-z

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Wirtschaft"

Weitere Artikel der Ausgabe 4/2017

Prospect theory and the effects of bankruptcy laws on entrepreneurial aspirations

Pricing shares in equity crowdfunding

When members of entrepreneurial teams differ: linking diversity in individual-level entrepreneurial orientation to team performance

Cross-national differences in entrepreneurial activity: role of culture and institutional factors

Drivers of SME performance: a holistic and multivariate approach

“Glocal” ties: banking development and SEs’ export entry

Premium Partner